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Corrections Corporation of America Message Board

  • rainbowroygbiv rainbowroygbiv May 25, 1999 9:31 AM Flag

    FEDERAL BUREAU OF PRISONS HAS

    a web page that shows facility utilization % by
    facility:

    http://www.bop.gov/weekly.html

    If you go to this page, and scroll down to the
    privately managed prisons section, they show data on the
    Eloy Detention Center. As I understand it, this is a
    CCA/PZN facility for federal inmates. The data they show
    on the page is as of May 21,1999. It shows only 1195
    of 1500 beds occupied, 79% utilization.

    This
    does not seem to jibe with the press release that was
    put out by the comapny which indicated all beds in
    the federal system are at 100% capacity.

    Does
    anyone understand this? Is this definitely a PZN
    facility? Are all the beds supposed to be for Federal
    Inmates?? I am confused.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • really trying to get to bottom of this, if can
      understand a few key issues, would be helpful. stock seems
      cheap, prison industry has had great fundamentals, and
      pzn dominates the marketspace. however, also some
      inconsistencies i need to work through to get comfortable
      (previous post). chatter on this page seems to have died
      out?

      • 2 Replies to rainbowroygbiv
      • Eloy has enough "room" to accommodate as many as
        1500 inmates, its "rated occupancy."

        However,
        due to inadequate sewer capacity serving the
        facility, the BOP has "certified" its capacity for a
        maximum of 1204 inmates. This lesser effective capacity
        has prevailed for several years and Eloy has not
        exceeded its BOP limited "certified capacity" nor is it
        presently contemplated that the sewer capacity restriction
        will be relieved to enable utilization of Eloy's rated
        capacity. Staffing @ Eloy has been set at the 1204 bed
        maximum level for the past 3 years.

        If 1195 beds
        are occupied, that would represent 99.25% of Eloy's
        certified capacity.

      • See 1800 through 1900. Lots of good info, pros & cons, some T/A also.

    • Most facilities estimate costs based on a 95%
      occupancy rate. There is usually a lot of inmate movement
      (to hospitals, other facilities, trial locations,)
      and facilities are rarely, if ever, full.
      Often
      beds are left unused in case of emergencies, or
      sidebar contracts held with other law enforcement
      agencies.

      Many facilities house different types of prisoners.
      Some arrange to accept county or out-of-county
      detainees, state prisoners, Border Patrol/INS detainees,
      etc. So, a facility may be at capacity, but have a
      variety of inmates, not all of one designation.

    • I appreciate the fact you have your personal
      opinion about the characters of management and I'm sorry
      people feel that way.

      I do not have information
      to prove or disprove any personal character
      references and I'm not really interested other then to make
      sure nothing illegal is happening.

      My
      background is financial and with Wall Street. I feel I do
      understand the purpose of the merger and think it has great
      merits and and am not paid by the comapny for any
      reason. Financial engineering is far more prevelant then
      you know...from GE to GM. Why...taxes. If you can
      save 40% or 5% in tax payments it makes you that much
      more competitive versus your competitors. Think about
      it. With such large profit margins PZN can issue
      stock at prices in the mid single numbers and have it
      be accretive.

      Like any business nothing goes
      100% as planned. At that junction you have to make a
      decision what in your future. If the business and profit
      margins are there the rest can be worked out. PZN is in
      this stage.

      Look at salaries of other firms
      and tell me this only happens at PZN. Doc sold I was
      told due tax reasons...a big tax bill from options.
      But who cares if he sold. Can't they diversify?


      To tell you the truth I'm worried about me. I want
      to figure what I�m going to do. All stocks that go
      down have the doomsday people come out of the
      woodwork. Some of the predictions come true..most do not.
      My concern is how the business is doing and how it's
      being run. Honestly and effectively...that's the bottom
      line to me. I not interested in being their best
      friend, that's not their job.

      Management's job in
      my opinion to tend to it's job of building a
      successful business. Creating shareholder wealth. Does this
      mean higher share prices, in the long term.

      I
      made a lot of money because of Bob Crants spin out
      REIT structure...I think he was underpaid.

      As
      usual JMHO

    • thats sad,you are missing the whole point i was
      trying to make.pay the saleries,get and keep better
      quality emploies who in turn will produce better quality
      of job preformance,then the pzn operated facilities
      will not be faced with the security problems which
      they have been faced with for the past few years.

    • I have just started investing in PZN this last
      week. I invest in div. paying value stocks and bonds. I
      could buy goverment bonds at less then 6%--Corp. bonds
      at 7-8%, junk bonds at 8-12%, or emerging market
      bonds at 12-13%. I have also researched all the
      closed-end div. paying funds.I have researched all the REITs
      and compared all the financial ratio comparisons for
      REITs. A large REIT like Simon Property Group has a
      Debt/Equity ratio of 2.48, pays a 6.92% dividend, and recent
      price of 29. Does anyone think that is a better buy
      then PZN at a Debt/Equity ratio of less then .50, 16%
      div., and price of 13!

      Before investing in PZN
      I studies their Annual Report, 10Q, merger proposal
      of last year, and read all the messages on this
      board. I understand all the pros and cons. I can
      understand that people who invested at 40 would be unhappy.
      But PZN is now 13...for the life of me I can't find a
      better div. paying value stock!! With the special div. I
      am going to get well over 20% just in div. through
      the end of this year and over 15% next year even if
      the stock does not go up...Is PZN more risky then
      emerging markets??? I think not. And PZN is growing and
      will be increasing the div. I do not believe they are
      going out of business so please tell me a better div.
      paying stock to buy.

      Those who are negative on
      the stock shouldn't look at the past -- look at what
      it sells for today and the growth of the company
      over the next few years. I just wish I had more money
      to invest and I have already invested a lot.....of
      course all bets are off if in fact management is
      involved in illegal acts.. which I don't think they
      are.

      For those buying at these levels the future is indeed
      bright!!!

    • if I overreacted and missed your intent, though
      my opinion still holds. I don't believe that PZN has
      any more security problems than government-run
      prisons (actually PZN has none as they don't run the
      prisons). The link we were given a few posts back had a
      story about an escape from a county jail right next to
      the one relevant to us. I don't think management
      needs to be ousted. I don't think they need to change
      anything. There are groups and individuals who want to see
      the company ruined and who were waiting for Doc to
      make a mistake so they could hammer on him. This is my
      personal belief. I appreciate the dialogue on this board.

    • with you. However the big blemish on PZM remains
      Investor confidence in management. No matter how you cut
      it the failure for the management team to disclose
      all information hurt everyone concerned. I don't
      beleive that Doc and Jr. are a bunch of crooks but they
      lack a good PR dept. They have a problem of
      communication with investors with their don't give a shit
      attitude. Even worse is their attitude to Wall St. A
      meesage to the wise if you continue to post watch
      the,,,,,,,,,,,,,,,,,,,,,,,,,,,,comas (see previous posts)

    • but yes they do run prisons,there are three in
      tennessee under there control,all of which has serious
      security problems which keep them under close eye of the
      state.all of which have somewhat undesireable staffing
      problems due to the type people they have to hire because
      of low wages.
      goodnight

    • Higher salaries may attract better staff, but I
      would place company culture and values ahead of
      salaries for getting the type and quality of staff you
      want.

      Wal-Mart doesn't pay their line help hardly anything, but
      they have great staff because they have a great
      culture (their managers do appear to make bucks,
      however).

      I don't know much about the quality of CCA's
      culture, but their wages are a bit on the low side;
      however, they are not having major problems finding guards
      to work for them.

      I think that private
      enterprise is simply better and that competition is a good
      thing even if private prisons only get 25% of the
      market it will be good for everyone including the
      prisoners.

    • The future WAS BRIGHT for those buying old CCA at
      30 and new PZN at 20. This company is controlled by
      DOC and his Band. If you can't trust the Management,
      you have NO IDEA WHAT FUTURE IS HOLDING FOR YOU!!

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